Orbitz 2008 Annual Report Download - page 44

As of December 31, As of December 31,
2007
Successor
2006
Successor
2005
Predecessor
2004
Predecessor
2003
Predecessor
As Restated
(Note 19)
As Restated
(Note 19) (unaudited)
Balance sheet data:
Cash and cash equivalents $ 25 $ 18 $ 28 $ 24 $ 2
Working capital (deficit)(b) (301) (283) (259) (204) (51)
Total assets 1,925 2,061 2,060 1,878 302
Total long-term liabilities 765 407 269 295 221
Total shareholders' equity/invested equity 738 1,267 1,424 1,303 5
(a)
The combined results of the Successor and the Predecessor for the periods in 2006 are not necessarily comparable due to the change in basis of
accounting resulting from the Blackstone Acquisition and the associated change in capital structure. The presentation of the results for the year ended
December 31, 2006 on this combined basis does not comply with generally accepted accounting principles in the U.S. ("GAAP"); however, we believe
that this provides useful information to assess the relative performance of our businesses in the periods presented in the financial statements on an
ongoing basis. The captions included within our consolidated statements of operations that are materially impacted by the change in basis of
accounting primarily include net revenue, depreciation and amortization and impairment of goodwill and intangible assets. We have disclosed the
impact of the change in basis of accounting for each of these captions in Item 7, "Management's Discussion and Analysis of Financial Condition and
Results of Operations."
(b)
Defined as current assets less current liabilities.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation.
EXECUTIVE OVERVIEW
General
We are a leading global online travel company that uses innovative technology to enable leisure and business travelers to research, plan and book a broad
range of travel products. Our brand portfolio includes Orbitz, CheapTickets, the Away Network, and Orbitz for Business in the Americas; ebookers in Europe;
and HotelClub and RatesToGo based in Sydney, Australia, which have operations globally. We provide customers with the ability to book a comprehensive set
of travel products, from over 85,000 suppliers worldwide, including air travel, hotels, vacation packages, car rentals, cruises, travel insurance and destination
services such as ground transportation, event tickets and tours.
We generate revenue through multiple sources, including our retail model, merchant model, incentive payments, advertising, and white label and hosting
business. Through our retail model, we earn fees and commissions from travel suppliers for airline tickets, hotel rooms, car rentals and other travel products and
services booked on our websites. Through our merchant model, we generate revenue for our services based on the difference between the total amount the
customer pays for the travel product and the negotiated net rate as well as estimated taxes that the supplier charges for that product. Under both the retail and
merchant models, we also earn revenue by charging customers a service fee for booking airline tickets and certain other travel products. In addition, we receive
incentive payments for each segment of travel that is processed through a GDS.
We generate advertising revenue through our partner marketing programs. These programs provide direct access to our customer base through a
combination of display advertising, performance-based advertising and other marketing programs. Our white label and hosting businesses enable us to earn
revenue by licensing our technology platform to, or hosting websites on behalf of, third-party partners.
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Source: Orbitz Worldwide, In, 10-K/A, August 28, 2008